Singapore is one of the best countries to try out a new venture. The environment and ready market are some of the things you can look forward to as a foreigner setting up a business in this country. You must have the right documents to carry out any business in this country. One of the most important ones is the visa, which ascertains your type of stay. You can visit their immigration offices or immigration service providers like One Visa, who will facilitate your visa’s quick processing.
You must consider the legal structure when you want to integrate an entity in this country. Remember, the decision you make will most likely affect your taxes and your business’s impression among consumers and suppliers. The main entity types in Singapore include a public limited company, a private limited company, and a public company. Foreign companies looking forward to expanding their market to Singapore can register as a subsidiary company, branch office, and representative office.
A sole proprietorship is another one you can set up, although many find it risky. A Limited Liability Company (LLC) and Limited Liability Partnership (LLP) have their legal existence in Singapore. You are personally responsible for your mistakes and debts in this type of entity. A Limited Liability Company is the most recommended type of entity to set up in Singapore because of the benefits you get to enjoy. The different benefits you get to enjoy include:
One good thing about this country is that it has the most flexible and lowest tax establishments. Entities do enjoy quite several tax exemptions. LLC’s corporate tax rate of up to 300,000 Singaporean dollars is below 9%, and that for-profits exceeding above 300,000 are capped at 17%. You also get to enjoy zero tax on your first 100,000 Singaporean dollars each year during the first three years of entity incorporation.
Raising enough capital to expand your business might be difficult at times. You might be required to secure loans from different lenders, which means you will have to put up some of your assets as collateral. It is much easier to raise capital for business expansion in LLCs because you are not limited to private finances or partner contributions.
Most foreigners also prefer Singapore because of its lenient immigration policies. They have introduced different passes that will motivate foreigners to invest in their country because their primary goal is to boost their economies. All these policies have made Singapore the best place for foreigners who want to set up different entities.
A Limited Liability Partnership or sole proprietorship cannot be sold completely. You will have to move each of the licenses, permits, and assets. Contrarily, you can easily transfer limited or full ownership of the company without interfering with the operations through stock sales. It is another reason why we should incorporate an LLC in Singapore.